Trump cannot fire Fed Governor Lisa Cook for now, judge rules
U.S. President Donald Trump cannot fire Federal Governor Lisa Cook, at least for now, a Federal Judge ruled on Tuesday night.
Judge Jia Cobb, who serves as a district judge of the U.S. District Court for the District of Columbia, issued a temporary restraining order against Trump over his attempts to fire Cook, a court filing showed.
The order comes some two weeks after Cook sued Trump over his attempt to remove her from the board of the central bank.
Trump in late-August said he was firing Cook over allegations of mortgage fraud against the Fed governor, which were brought by Federal Housing Finance Agency Director Bill Pulte.
Cook-- the first Black woman to serve on the Fed board-- had rejected Trump’s claims, stating that he had no authority to fire her.
"Allowing the President to unlawfully remove Governor Cook on unsubstantiated and vague allegations would endanger the stability of our financial system and undermine the rule of law," Cook’s attorney Abbe Lowell said in a statement on Tuesday.
Tuesday’s order states Fed Chair Jerome Powell and the central bank’s Board of Governors were enjoined from executing any order calling for Cook’s removal from her position.
Trump is expected to appeal the order, with the case likely to head to the Supreme Court.
Tuesday’s ruling offers temporary respite to investor concerns over the Fed’s independence, especially as Trump engaged in a slew of attacks against the central bank’s members this year.
A bulk of these were directed at Chair Powell, who Trump has repeatedly badgered to cut interest rates.
Cook is one of three Biden-era Fed appointees whose terms extend beyond Trump’s second term. Replacing Cook with his own nominee stands to give Trump greater influence over the Fed’s rate-setting board.
While the Fed is widely expected to cut interest rates during its September meeting, Powell has remained largely non-commital towards any further easing, citing concerns over the inflationary effects of Trump’s trade tariffs.
Source: investing.com
